American Airlines Files For Bankruptcy

Tuesday, November 29, 2011

American Airlines' parent company, Texas-based AMR, filed for Chapter 11 bankruptcy Tuesday morning, making it the last major airline in the U.S. to do so. American, the nation's third largest airline, will continue operations during the restructuring, which it hopes will reduce labor costs and $29.6 billion in debts. AMR has lost $982 million since the beginning of the year, and has posted annual losses for the last three years. In recent years, American has struggled to compete against United and Delta, both of which merged with other airlines after going through their own reorganizations.

Barbara Peterson, senior aviation correspondent for Conde Nast Traveler, discusses what the bankruptcy means for labor unions and consumers.

Comments [1]

Angel from Miami, FL

The shareholder must be given their due. And some millions in bonus for the executives, too. The best way to do this is to start firing the workers. Because it's the shareholders and executives that do all the work anyways.

I swear, if it didn't cost millions to research all of these industries would be run by robots right now. (Psst, it's also monetarily unsustainable, folks.)

Nov. 29 2011 11:39 AM

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